Property auctions can be a thrilling experience. The fast-paced environment, the competitive bidding, and the prospect of securing a dream property can create a heady mix of excitement and anticipation. However, this exhilarating atmosphere can also lead to a common phenomenon known as ‘auction fever’. This article delves into the psychology of auction fever and provides practical strategies to combat it.

Understanding Auction Fever

Auction fever is a psychological state where bidders get caught up in the competitive nature of the auction and end up bidding more than they had initially planned. It’s a form of emotional bidding where the desire to win overrides rational decision-making. The result can be paying a premium for a property or, in the worst-case scenario, suffering from buyer’s remorse after the auction.

The Psychology Behind Auction Fever

Several psychological factors contribute to auction fever. The social dynamics of an auction can create a sense of competition and urgency. The fear of missing out (FOMO) can drive bidders to act quickly and place higher bids. The endowment effect, where people tend to overvalue something they own or hope to own, can also play a role. In the heat of the moment, bidders may start to see the property as theirs and bid aggressively to secure it.

Strategies to Combat Auction Fever

Understanding auction fever is the first step towards managing it. Here are some practical strategies to keep emotions in check during an auction:

Set a Maximum Bid

Determine your maximum bid in advance and stick to it. This can help prevent getting carried away in the heat of the moment. Remember, there will always be other properties and opportunities.

Avoid Stressors

Try to avoid any triggers that could elevate your heart rate before and during the auction. This could include avoiding caffeine, ensuring you have plenty of time to get to the auction, and doing something relaxing beforehand.

Understand the Market

Do your research on the property and the market. Knowing the true value of the property can help prevent overbidding. Use comparable sales data, understand market trends, and consider seeking advice from a property professional.

Stay Emotionally Detached

Easier said then done – but try to stay emotionally detached during the bidding process. While it’s natural to feel a connection to a potential new home, it’s important to keep emotions in check. Remember, an auction is a business transaction, and the goal is to secure a property at the best possible price.

Take a Break

If you feel yourself getting caught up in the excitement, step away and take a few moments to calm down and refocus. This can help you regain perspective and make better decisions.

Get help from a professional

Engaging a professional, independent buyers agent is an effective strategy to combat auction fever. We are experienced professionals who understand the dynamics of auctions and can help navigate the process with a clear, objective perspective. We provide valuable insights into the property market, help set a realistic budget, and develop a strategic bidding plan.

As buyers agents, we act solely in the best interests of the buyer, providing a level of protection against the emotional and competitive pressures of an auction. We provide a level of detachment to the process that can be difficult to achieve when you’re personally invested in the outcome. This can help prevent overbidding and ensure that decisions are made based on sound judgement and thorough market analysis, rather than emotional impulses.